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Treasury head Reeves has stated she is preparing "specific action to tackle household expense issues" in next month's Budget.

During an interview with the BBC, she noted that lowering inflation is a joint task of both the government and the central bank.

The United Kingdom's inflation rate is projected to be the highest among the G7 advanced economies this calendar year and next.

Possible Utility Bill Measures

It is understood the government could intervene to reduce energy bills, for example by slashing the present 5% rate of value-added tax charged on energy supplies.

Another possibility is to cut some of the government charges currently included in household expenses.

Fiscal Limitations and Analyst Predictions

The administration will receive the next draft from the independent fiscal watchdog, the Office for Budget Responsibility, on the start of the week, which will show how much scope there is for these measures.

The expectation from the majority of economists is that the Chancellor will have to introduce tax rises or expenditure reductions in order to meet her self-imposed borrowing rules.

Previously on Thursday, analysis showed there was a £22bn gap for the Treasury chief to fill, which is at the more modest range of expectations.

"There's a collective responsibility between the Bank of England and the government to further reduce some of the drivers of price increases," Reeves told the BBC in Washington, at the yearly gatherings of the IMF and global financial institution.

Tax Pledges and Global Concerns

While a great deal of the focus has been on probable tax rises, the chancellor said the latest data from the OBR had not changed her pledge to campaign commitments not to increase rates on income tax, VAT or social security contributions.

She attributed an "unpredictable global environment" with increasing international and trade issues for the fiscal revenue measures, likely to be directed on those "with the broadest shoulders."

International Trade Tensions

Referring to concerns about the United Kingdom's trade ties with China she said: "Our security interests invariably are paramount."

Last week's statement by China to tighten trade restrictions on rare earths and other materials that are key for high-technology manufacturing led US President the US President to propose an additional 100% tariff on goods from China, increasing the risk of an all-out commercial conflict between the two economic giants.

The American finance chief called China's decision "commercial pressure" and "a global supply chain control attempt."

Questioned on considering the US offer to participate in its battle with the Asian nation, the Chancellor said she was "extremely troubled" by Chinese actions and encouraged the Chinese government "not to put up barriers and restrict access."

She said the move was "harmful for the global economy and creates further challenges."

"I believe there are sectors where we must challenge Chinese policies, but there are also important prospects to trade with Chinese markets, including financial services and other sectors of the economic system. We've got to maintain that balance appropriate."

The Treasury chief also stated she was collaborating with other major economies "on our own critical minerals strategy, so that we are less reliant."

NHS Medicine Costs and Funding

Reeves also acknowledged that the cost the National Health Service pays for drugs could increase as a result of current talks with the US government and its pharmaceutical firms, in exchange for lower tariffs and funding.

A number of the world's largest pharmaceutical manufacturers have said in recent statements that they are either halting or canceling operations in the UK, with several attributing the low prices they are getting.

Last month, the government science advisor said the cost the health service spends on medicines would have to rise to prevent firms and drug research funding departing from the UK.

Reeves informed media: "We have seen due to the payment system, that clinical trials, new drugs have not been available in the United Kingdom in the manner that they are in other EU nations."

"We want to make sure that patients receiving treatment from the NHS are able to receive the finest critical medicines in the world. And so we are looking at this situation, and... looking to secure additional investment into Britain."